World Liberty Financial (WLFI), a crypto banking platform backed by the Trump family, has raised a staggering $550 million through two rounds of token sales. The second round alone, which ended recently, saw over $250 million in crypto assets purchased by accredited investors.
According to the company’s press release on March 17, more than 85,000 participants completed know-your-customer (KYC) verification to gain access to the token sale. However, WLFI tokens remain non-transferable and unlisted on any major exchanges, per reports from CoinDesk.
“WLFI is on track to supercharge DeFi [decentralized finance],” said Zach Witkoff, co-founder of the venture.
Trump Family’s Stake Sparks Ethics Concerns
The Trump family holds a significant stake in WLFI, with reports from CNBC indicating that they could receive up to 75% of the platform’s net revenue.
This revelation has amplified concerns about the intersection of political influence and financial interests, especially as Trump ramps up his pro-crypto policies.
Earlier this month, Trump signed an executive order to establish a Strategic Bitcoin Reserve, a move seen as a major step in shaping U.S. crypto policy. Critics argue that his personal financial interests in WLFI and other digital assets could undermine regulatory integrity.
High-Profile Investors and Controversial Connections
WLFI’s token sales have attracted several notable investors, including:
- Justin Sun, founder of Tron, who purchased $75 million worth of WLFI tokens in January. Reports later emerged that Sun and the U.S. Securities and Exchange Commission (SEC) were in discussions to settle a civil fraud case against him.
- David Sacks, the Trump administration’s AI and crypto czar, who reportedly sold over $200 million worth of crypto investments before taking office to avoid potential conflicts of interest.
The Political and Financial Fallout
The Trump family’s direct financial stake in a crypto project, coupled with the administration’s push for crypto-friendly policies, raises serious ethical questions.
As Trump continues to advocate for reduced crypto regulations, critics worry that financial gains for his family and inner circle could influence policy decisions at the expense of broader public interest.
While supporters argue that Trump’s crypto-friendly stance will boost financial innovation, others warn that unchecked political entanglements with digital assets could destabilize financial markets.
As regulatory scrutiny over cryptocurrency and political conflicts of interest grows, the implications of Trump’s crypto involvement are likely to remain a hot-button issue in the coming months.